Facebook shares slump following fake user confession
 

Social networking giant Facebook has seen its share price tumble after revealing that around 83 million of the site?s profiles are fake.

The firm made the disclosure in a 10-Q financial document, filed with the US Securities and Exchange Commission, following the publication of its second quarter results last week.

[LINK]

Facebook Inc 20.04

https://www.google.com/finance?client=ob&q=NASDAQ:FB#

and how long have they known this ? Sounds like the entire initial offering was based on a lie:2 cents:

312 million of their accounts are what's fake. :thumbsup

Taking biz from FB?

http://www.valuewalk.com/2012/08/lin...-by-investors/

FB will fall further.

fb will fall harder than myspace

FB is losing it's luster with kids from what I can see.

facebook is slamming !

A gratifying dump.

FB is famous but still to go a long way.....too much unusual about it......

FB = poop

80 Million! That is a lot, I for one thing facebook is not worth the share price they started with, and the value they placed on the company is not real value.

They will have some trying time on the markets for a few year. But they may gain strength over time.

Oh, well ...

Zuckerburgled :2 cents:

http://img405.imageshack.us/img405/9...ok23000980.jpg

When will people learn?

http://static.ibnlive.in.com/ibnlive...erg_071210.jpg

83 million fake profiles, bots clicking ads, stock about to hit under $20 ... I smell a lawsuit by shareholders.

.

Oh please. People did it to themselves. No one was forced to buy, and anyone with even HALF a brain could have seen that:

1. There are plenty of fake FB profiles
2. Nobody clicks on, or even notices, the ads
3. The stock was valued at 100x earnings.
4. There was no way to increase revenue without selling all the personal data in big chunks, which would destroy the brand.


People suckered themselve. Everyone I talked to that was silly enough to buy it had two reasons, either they wanted to "own a piece of Facebook", or they thought they would make a quick easy 15% in a week and sell. It was all just wishful thinking on their part, and that's what happens when you make stupid decisions..... It costs you.





.:2 cents:

:thumbsup

This is true. Without gullible suckers, it'd be much harder for scammers of the world to succeed. Doesn't mean these suckers didn't get Zuckerburgled just the same. :1orglaugh

http://theswash.com/wp-content/uploa...ughing_600.jpg

it's not really surprising that it played out like this... and it's probably just a beginning, I wouldn't be surprised at all if FB ends up a <10 stock by the end of the year... :2 cents:

exactly....

What is a fake user?

(a) is it users that fb have faked?

or is (b) it fake acounts people have set up?

if its (b) are they fake or just people who do not want to use there rea\l deatails but still use the accounts?

I coach a HS sport. They are ALL on FB use it every min of every day. I don't know what kids you are referring to.

You may not like FB at this price, but I love them long term. They are supposedly working on a linked in version on their site. So you have a social and a professional profile.

facebook is junk. $5 or less within a year. facebook is a fad

I doubt these figures include the millions of accounts created by spammers over the years. Wonder how much their stock would tank if those figures were published.

Every site trying to be everything to everyone. Sigh.

This article is interesting, the guys at 37signals are about as practical as you can get. Take a read of this. When they were valued at 30 billion they hadn't figured out how to substantially bank on users and given circumstances unlikely they ever will.
Zygna really figured it out. Phew!

David Heinemeier Hansson (creator of Ruby on Rails (37signals basecamp) on his thoughts on Facebook being irrationally valued.

In related news, Friendfinder's stock continues to spiral downward after admitting that 93% of the profiles on their website Adultfriendfinder are fake.

Correct. All they do is twitter and Instagram.

So the hot babe I've been wiring money to for the past 6 months might not be real?

fb will fall harder than friendster !

:thumbsup











Mathieu

FB's stock might fall, but saying the company will fail like myspace or friendster is an admission of not understanding why any of them were successful or failed. Facebook was the first to do it right.

As long as money can be made on the Internet there will always be fake accounts and spammer. I don't see the big deal, they have something like 900mil+ users and only 80mil are spam/pet pages/misconfigured pages... That's a lot better than any other site.

10they have gone up a bit: 21.09

They didn't get 'scammed'. A scammer is a thief. It's someone who for example agrees to provide X but instead provides Y or nothing at all after having received the money.

The people who bought FB shares, got what they paid for: shares.

That they weren't able to make the huge profit they were hoping to make off of those shares does not mean that they were scammed. Every entrepreneurial activity is by definition speculative. There's risk involved. Everyone who did not refuse to see the risks here, could see the risks were huge. One quick look at Zynga for example would have been more than enough.

I enjoy a gratifying dump....

:thumbsup

I have to agree. There needs to be some personal responsibility taken for your investments. If you didn't know it was high risk then you didn't do your due diligence.

:thumbsup Absofrigginlutely. Don't gamble more than you can afford to to lose; and they all expected to make millions.